Fund managers likely to be pleased on pay

Fund managers are entitled to be paid millions of pounds if they’re delivering high returns for investors, the U.K. markets regulator said, the first sign it won’t seek to impose wage caps on the industry.

'What that person gets paid, if it’s 17 million, 7 million or 27 million, if investors’ long-term savings needs are met by that, and that’s better than they could get elsewhere from a person who’s paid a million pounds a year, then for investors, that’s a good thing overall,' Will Amos, the head of investment-management supervision at the Financial Conduct Authority, said in an interview in London. 'We’d be comfortable with that.'

While some members of the European Parliament sought to impose bank-style bonus limits on fund managers in July last year, the measure failed by a margin of seven votes out of 695 cast amid concern the step would drive up fixed costs and hurt returns.